Covington & Burling LLP | Practices, Industries & Regions

Our Tax Group includes lawyers with exceptional credentials and reputations, many with government experience, who advise multinational corporations, financial institutions, sovereign wealth funds, sports teams and leagues, governments, and others on their most important and sensitive tax matters. These matters include the successful resolution of domestic and international tax controversies; inbound and outbound investments; mergers, acquisitions and dispositions; and the development, documentation, and defense of transfer pricing policies. Our work in these matters is based on an in-depth understanding of our clients’ business and operations.

Covington’s tax controversy experience includes very large case audits; advance pricing agreements; and administrative appeals and litigation involving a broad spectrum of subject matter areas, including transfer pricing, foreign and research tax credits, accounting methods and periods, the treatment of corporate reorganizations and restructurings, the treatment of items under the consolidated return regulations, capitalization of intangibles, allocations under Section 861, partnership issues, allowance of losses on subsidiary stock, economic substance, and Subpart F inclusions. We understand that resolution of tax controversies requires creativity and a complete understanding of the impact of the controversy and potential resolutions on our clients.

Covington’s international tax practitioners employ both standard and creatively tailored planning solutions to achieve sustainable tax minimization consistent with our clients goals and business operations. Our experience includes developing and modifying trading structures, cash flow strategies and repatriation, advising on transfer pricing methods, internal restructurings, overall effective rate reduction, and post-acquisition integration. To address tax issues involving multiple jurisdictions, we rely on our own experience and on our network of correspondent firms (one of the top tax advisory firms in each country) or on our clients’ regular foreign advisors.

Covington’s practice in the financial products area spans a broad range, encompassing among other things domestic and international transactions, exchange-traded and over-the-counter products, and hedging strategies. We regularly advise clients on tax issues raised by new financial products, such as credit derivatives, structured debt, and exotic options. Our clients include U.S. and foreign hedge funds, CDO sponsors, mutual funds, banks, pension trusts, corporations, and wealthy individuals.

Covington’s tax lawyers play an integral part in the firm’s M&A and transactions practice and regularly counsel clients on major corporate and partnership transactions. Our expertise includes advising clients on various acquisition structures in public and private mergers and acquisitions, spin-offs and distributions, tax-efficient capitalization of new and existing subsidiaries, and joint venture and fund formation. In addition, we regularly advise clients in the renewable energy sector concerning various federal incentives that may apply to their transactions, including production and investment tax credits and grants.

Members of our legislative and regulatory advocacy group regularly represent clients before the Treasury Department, before the National Office of the IRS, and in legislative matters, and are well known to high-level government policy makers. Members of our group with government experience include Bill Paul, former Deputy Tax Legislative Counsel in the Office of Tax Policy at the Treasury Department; Roderick DeArment, U.S. Senate Committee on Finance, Chief Counsel and Staff Director; Rob Culbertson, Associate Chief Counsel (International) for the Internal Revenue Service; Michael Caballero, International Tax Counsel, U.S. Treasury; and Dirk Suringa, an Attorney Advisor in the office of International Tax Counsel.

Covington’s tax lawyers are intimately familiar with every aspect of the sports industry, including sponsorship and broadcast agreements, franchise acquisitions, stadium financings, and player bonuses. We combine our deep and broad knowledge of the business of sports with our technical expertise in tax law. Our clients include leagues and teams; corporations, partnerships, and individuals; and U.S. and non-U.S. entities.

Partners

Our newest partner, Michael Caballero, joined us after serving as international tax counsel at the U.S. Treasury Department, where he was one of the administration’s most senior international tax policy officials, leading legislative, regulatory and treaty projects of key importance to multinational corporations and financial institutions, including specifically implementation of the Foreign Account Tax Compliance Act (FATCA).
Bill Chip serves on the Tax Committee of the OECD’s Business and Industry Advisory Committee and chairs the following committees: Tax Treaty Subcommittee of the American Bar Association’s Tax Section’s Committee on Foreign Activities of U.S. Taxpayers and Transfer Pricing Subcommittee of the U.S. Council for International Business’s Tax Committee.
Former Associate Chief Counsel (International) for the Internal Revenue Service, Rob Culbertson, has more than 25 years of international taxation experience, including 13 years in the government. He participated in many significant developments in U.S. international taxation, including the revision of the U.S. transfer pricing regulations, the parallel development of new OECD guidelines, and the development of regulations relating to foreign tax credits, subpart F rules, outbound transfers, and conduits. Mr. Culbertson also served on the Joint Committee of Taxation during the Tax Reform Act of 1986.
Rob Heller, is a member of the New York City Bar Association's Committee on Taxation of Business Entities and was the lead author of the committee's recent report on the federal income tax treatment of contingent consideration in corporate reorganizations.
For the last decade, Daniel Luchsinger has been an adjunct professor of law in partnership taxation at the Georgetown University Law Center, and is a frequent speaker for the Tax Executives Institute on partnerships, international tax, and related subjects. Mr. Luchsinger is currently co-chair of the tax group.
Immediate past Chair of the Tax Section of the American Bar Association, Bill Paul, is a fellow in the American College of Tax Counsel, and a member of the American Law Institute.
Lead of the firm’s sports tax practice, Jeremy Spector is outside tax counsel to the National Football League, Major League Baseball, the National Hockey League, the National Basketball Association, Major League Soccer, and the U.S. Olympic Committee.
Dirk Suringa is a member of the executive committee of the International Fiscal Association, USA Branch and also of the Tax Management Advisory Board, U.S. International. He recently testified in a personal capacity before the Select Revenue Measures Subcommittee of the House Ways and Means Committee on the Foreign Account Tax Compliance Act. Prior to joining Covington, Mr. Suringa served in the Office of International Tax Counsel, U.S. Treasury, where he worked on foreign tax credit and treaty matters.
Emin Toro, is a member of the Inns of Court, and regularly handles complex matters for major companies, winning praise from veteran in-house practitioners for his acumen and strategic vision.
Co-chair of the tax group, Reeves Westbrook co-authored “Examination and Appeals,” Practical Guide to U.S. Transfer Pricing, Third Edition (Fall 2010).

Accolades

Covington and our tax practitioners have received honors from leading publications and hold leadership positions in a number of professional organizations.

Chambers USA (2012) ranked Covington nationally for tax in the corporate and finance category and as a leading DC tax practice, and recognized as leading practitioners Bill Chip, Rob Culbertson, Dan Luchsinger, Bill Paul, Dirk Suringa, Emin Toro and Reeves Westbrook; and Chambers Global (2012) recognized Rob Culbertson as a leading practitioner in International Tax.
Legal 500 US (2012) ranked Covington in the Domestic Tax: East Coast, Financial Products, International Tax, and Tax Controversy categories, recognized Rob Culbertson as a leading practitioner in International Tax, and recommended Kurt Baca, Bill Chip, Rob Heller, Dan Luchsinger, Bill Paul, Jeremy Spector, Dirk Suringa, Emin Toro and Reeves Westbrook.
Rob Culbertson, Bill Paul, Dirk Suringa, Reeves Westbrook and Roderick DeArment (now senior counsel) were recognized in Best Lawyers in America (2013).